The government's five-year plan, running from 2024 to 2029, is supported by a clear financing architecture. While private investment is set to provide 43 percent of the total, the remaining 57 percent will come from public resources, including government revenues and external grants and concessional loans. This public-private funding mix is designed to propel Rwanda towards an average annual GDP growth rate of 9.3 percent over the five-year period.
Doubling private investment and creating jobs
The NST2 aims to more than double private investment, from a 2023 baseline of $2.2 billion to $4.6 billion by 2029. This capital influx is expected to support the creation of 1.25 million productive and decent jobs over the strategy's duration, addressing key unemployment challenges.
Much of the investment will be channelled through the domestic financial system, according to the newly released Financial Sector Development Strategy (FSDS) 2025â€"2029. Over 70 percent of private funding is expected to flow via local banks, insurers, pension funds, capital markets, and a growing fintech sector.
The approach aligns with Rwanda's long-term goals of achieving upper-middle-income status by 2035 and high-income status by 2050, by building a more competitive, innovative financial sector capable of directing capital to manufacturing, agriculture, housing, and small businesses.
Addressing financial bottlenecks
Despite a 96 percent financial inclusion rate, Rwanda faces bottlenecks that limit private capital flow. These include low national savings, high lending costs, a shortage of long-term financing products, and gaps in access to finance for SMEs, women, youth, and agriculture-dependent communities. The government aims to raise national savings from 12.4 percent of GDP to over 25 percent by 2029.
Reforms to unlock credit
The FSDS sets out reforms to strengthen trust in financial institutions, expand accessibility, enhance customer engagement, and boost financial literacy. Banks and microfinance institutions are expected to expand credit to productive enterprises, while Umurenge SACCOs will be consolidated into a national cooperative bank to improve community-level lending efficiency. These reforms are intended to help businesses grow and generate jobs.
Capital markets as an engine of growth
The strategy also targets capital market development. Plans include expanding listings on the Rwanda Stock Exchange, increasing corporate bond issuance, and attracting venture capital and private equity into high-growth sectors. Export revenues are projected to grow by at least 13 percent annually, reaching $7.3 billion by 2029.
Pension funds, including the Ejo Heza long-term savings scheme, will provide a stronger domestic supply of long-term capital, offering Rwandans more opportunities to save and invest.
Digital finance to accelerate investment
Digital finance forms a key part of the plan. Building on mobile money and the eKash national payment system, Rwanda is exploring the introduction of a Central Bank Digital Currency to reduce transaction costs and facilitate cross-border trade.
To track implementation, the FSDS establishes a governance and monitoring framework led by the Ministry of Finance with sector regulators. Progress will be measured through quarterly reports and joint reviews assessing the financial sector's contribution to NST2 goals.
Though Rwanda's financial sector currently contributes just 2 percent of GDP, the government emphasises its outsized role in mobilising investment for national growth.
Officials believe that, if successfully implemented, these reforms will create a stronger, more resilient economy, reduce reliance on concessional financing, and unlock opportunities for citizens to save, invest, and generate wealth.
Wycliffe Nyamasege
